In this article we will discuss how to withdraw money from your forex trading account.
The process and the problems you might encounter are generally the same for all brokers.
In this post you will find information about:
- how to withdraw money
- information about withdrawal methods
- solutions to the main problems with withdrawals
How to withdraw money from a forex trading account
1. Login into your trading account
The very first thing you will need to do is get logged into your trading account. Head over to your forex broker’s website and make sure you have your login details to hand like your email address or username, and account password.
If you haven’t an account yet, you can choose one among the best forex brokers in the world.
2. Go to the withdrawals page
Your next stop will be the withdrawal page of your broker.
Generally, this page can be found on your trading platform, or into your trading account personal area.
3. Choose the withdrawals method
In most cases, a forex broker will require you to withdraw money using the same method you used for a deposit. The reasons here are two-fold.
The first is to fight money laundering. While the second one is to prevent any kind of theft or illegal purpose for making a withdrawal if your account has been compromised.
4. Insert the amount of money
When you input the amount, make sure the withdrawal doesn’t exceed the equity of your trading account.
Additionally, you will be able to withdraw only the amount of cash you haven’t invested yet. If you wish to withdraw the 100% of the amount in your trading account, you must close the trading positions you’ve previously opened.
5. Wait for the withdrawal to be processed
The final step is to wait for your withdrawal to be processed. This usually takes 1-3 business days depending on the method you are using.
What are the fastest withdrawal methods with forex brokers?
You will usually find that the fastest withdrawal methods, perhaps even instant, can be credit cards and e-wallets.
In terms of cards, most forex brokers will usually accept Visa or Mastercard. Though e-wallets are less common, you may find PayPal, Neteller, and Skrill with a broker. Again, the processing time could be anything from a few seconds, to 30 minutes with these.
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Pros and cons of each forex broker withdrawal method
Forex brokers generally offer three deposit methods: wire transfer, credit or debit card, and eWallet.
Wire transfers, despite generally taking 2 to 5 business days, are the most popular method used by forex traders because they allow higher amounts to be deposited at reduced fees.
Credit or debit cards are accepted on the Visa and Mastercard circuits (more rarely on Maestro). Card deposits are faster than wire transfers, but may charge higher fees.
Through eWallets (usually Skrill, Neteller and Paypal) deposits are generally instant and very flexible, however they often charge very high fees compared to other deposit methods.
Withdrawal problems you may face with your forex broker
With your forex broker you can run into four main problems:
- The inability to deposit due to lack of verification
- A change in the withdrawal method
- An error in the withdrawal process
- Lack of seriousness of the broker itself
Generally, the verification of your identity must be completed even before making your first deposit, but some brokers allow you to deposit without verification. However, in order to withdraw money, account verification will always be required, which goes through providing the broker with proof of address and proof of identity. The verification process typically takes 3-5 business days.
Forex brokers require the trader that withdrawals be made to the same account used for the deposit in order to combat money laundering. Changing withdrawal method is possible, however, but you will need to contact the broker and go through a verification process that typically takes up to 5 business days.
Each broker also sets a minimum withdrawal for each payment method. Typically, the minimum withdrawal is always less than $50, which is why the broker may not accept withdrawals below a certain threshold. Before you withdraw or choose a forex broker, make sure its policies on deposits and withdrawals suit your goals.
When you choose an unregulated broker, it may reject your withdrawals and never give you your money back. Unfortunately, scams of this type are commonplace, and the only way to prevent this is to choose a regulated broker.
Can a forex broker steal their traders’ money?
Regulated forex brokers cannot steal their traders’ money because your funds are held in segregated bank accounts, meaning the broker can’t touch your money for their own personal use at all, even in the event of bankruptcy.
With that said, you can learn how scam forex brokers cheat traders through our detailed guide and help yourself stay protected.
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